Usage-Based Insurance Market is valued at USD 21.48 Billion in 2020 and expected to reach USD 102.45 Billion by 2025 with the CAGR of 25.52 % over the forecast period.
Usage-Based Insurance Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2020-2025. Increasing awareness of telematics and its associated insurance benefits including flexible insurance premium, lower accident & vehicle theft possibilities, accurate & timely data collection are some major impacting factor driving the growth of the global usage-based insurance market.
Usage-based insurance (UBI), also known as telematics, works by tracking driving behavior through devices installed in a vehicle or through smart phones. UBI is mainly used to monitored driver’s behavior directly while the person drives, allowing insurers to more closely align driving behaviors with premium rates. Usage-based insurance (UBI) is a type of vehicle insurance by which the costs are dependent upon type of vehicle used, measured against time, distance, behavior and place. Usage-based insurance contains different services such as pay-as-you-drive (PAYD), pay-how-you-drive (PHYD) and manage-how-you-drive (MHYD). The devices can measure informative data that collected data is then used by the insurer to help determine premiums. UBI programs provide many advantages to consumers, insurers and society. UBI is often powered by in-vehicle telecommunication devices (telematics)-technology that is available in a vehicle that is self-installed using a plug in-device or already integrated in original equipment installed by car manufactures. Also, UBI can be accessible through mobile applications. Usage-based insurance market report is segmented on the basis of type, technology and by regional & country level. Based upon type, global usage-based insurance market is classified into Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD) and Manage-How-You-Drive (MHYD). Based upon technology, global usage-based insurance market is classified into OBD-II, smartphone, hybrid and black-box.
The regions covered in this usage-based insurance market report are North America, Europe, Asia-Pacific and Rest of the World. On the basis of country level, market of usage-based insurance is sub divided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, South East Asia, GCC, Africa, etc.
Usage-based insurance market report covers prominent players are,
Toyota joined with Progressive Insurance on Usage Based Insurance
News: APRIL 15, 2020, Progressive Insurance and Toyota Insurance Management Solutions (TIMS) announced partnership to provide owners of connected Toyota vehicles with an opportunity to seek insurance discounts from Progressive. This profit extended to any Toyota client who purchased a 2020 or newer Toyota Camry, RAV4, or other vehicle model equipped with the most recent connected vehicle technology.
Usage-Based Insurance Market Dynamics –
Increasing awareness of telematics and its associated insurance benefits including flexible insurance premium, lower accident & vehicle theft possibilities, accurate & timely data collection and lower fuel consumption are some major impacting factor driving the growth of the global usage-based insurance market. According to National Association of Insurance Commissioners, Progressive Insurance Company and General Motors Assurance Company (GMAC) began to offer mileage-linked discounts through combined GPS technology and cellular systems that tracked miles driven. These discounts are often combined with ancillary benefits like roadside assistance and vehicle theft recovery. Additionally, the use of telematics helps insurers more accurately estimate accident damages and reduce fraud by enabling them to analyze the driving data (such as hard braking, speed, and time) during an accident. However, high cost associated with usage-based insurance service is a major factor expected to hamper growth of the global usage-based insurance market. Moreover, adoption of technological advancements, raising awareness regarding the usage-based insurance services is predicted to create wide opportunities for the players operating in the usage-based insurance market during forecast period.
Usage-Based Insurance Market Regional Analysis –
North America is dominating the usage-based insurance market with the potential rate due to increasing smartphone users rapidly, increasing adoption of Mobility as a service and increasing collaborations between telematics and insurance companies in the region. According to the PewResearchCenter, estimates that 92 percent of Americans have cell phones and 45 percent have access to a tablet computing device. For instance, Progressive Casualty Insurance Co is a leading property and casualty insurance provider in US.
The Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period with due to increasing internet users the rising number of smart connection devices, adoption of smart phones and presence of insurance providers in the region. For instance, Toyota Insurance Management Solutions (TIMS), an independent P&C insurance agency under Toyota’s Financial Services umbrella launched a usage-based insurance (UBI) program for owners of their cars. Moreover, developing strong internet infrastructure and high penetration of IT solutions in industry verticals in developing countries such as China, Japan and India. Moreover, increasing government initiative towards usage-based insurance will increase demand for usage-based insurance in forecast period.
Key Benefits for Usage-Based Insurance Market Reports –
Global Market report covers in depth historical and forecast analysis.
Global Market research report provides detail information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market opportunities, Competitive Analysis, Regional and Country Level.
Global Market report helps to identify opportunities in market place.
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